Why did Kogas sell its stake; and why did Regal Funds buy it???
The question of difficulty in extracting the gas was raised by a poster some months back.
..... The geology of the area is very well understood from previous extensive drilling by Arrow and Shell PetroChina now own much of the territory in and around BUL's, as we all know. (would they have bought something they couldn't use?). But, as I was informed by an industry informed person, (as with any commodity market), projects which may not be as economical in low priced environments, can be very economical in higher priced times.... Also, techniques are much improved nowadays and this will also be an enabler.
Personally, I can't imagine the likes of JEF and JP with their depth of industry knowledge and experience would be wasting their time attempting to sell something that was "unsaleable" (or likely to have bought it in the first place for that matter). It may be the price they have been chasing is/was too high (or terms desired??), but that can be remedied by adjusting price expectations etc., if such be the case.
Different strategy? Maybe. I'm sure the lads are talking about getting a deal done and different strategies may be on the agenda, but from our side of the fence it's near impossible to know what is going on isn't it.... Like everyone, looking forward to the next quarterly hopefully with some sort of meaningful update.
